Peter Lee has been employed by Nino Inc (Nino), a company carries on business in Australia, as a project manager for three years. On 1 April 2018, Peter was sent to Hong Kong to handle a project for the Hong Kong branch of Nino for 2 years. He was also required to travel to the PRC as necessary. In consideration of Peter’s assignment to Hong Kong, Nino revised his employment contract to include the provision of housing benefits in Hong Kong. His salary was paid directly into his bank account in Hong Kong. Peter’s travelling schedule (only the arrival day in Hong Kong is counted as present in Hong Kong) for the year ended 31 March 2019 was as follows: Hong Kong PRC Australia 204 days 120 days 41 days (including 25 days annual leave) 365 days Peter is remunerated by a fixed monthly salary of $50,000. Nino rented a flat at $12,000 per month and provided the flat to Peter at a monthly rent of $1,500. Peter was sick and hospitalized for one week in Hong Kong. The total medical expenses amounted to $30,000, of which $25,000 was successfully claimed against Nino’s insurance company under its employees’ group insurance policy. The balance was reimbursed by Nino.

Required:

Based on the prevailing practice and principles adopted by the Inland Revenue Department, determine the source of employment of Peter Lee. (5 marks) (b) Assuming that Peter Lee is under non-Hong Kong employment, compute the assessable income of Peter Lee for the year of assessment 2018/19.

Answer rating: 100% (QA)

as peter lee is under employment of nino inc a company in au... View the full answer